Mumbai: The pension fund regulator, Pension Fund and Regulatory Development Authority (PFRDA) will soon allow National Pension System (NPS) subscribers diagnosed with Coronavirus to withdraw 25 per cent from their account. This will be extended to subscribers whose family member has been affected too.
Speaking to The Free Press Journal, PFRDA, chairman, Supratim Bandyopadhyay, said, “The decision has been taken by the board. The circular on it will be out in a day or two.”
At present, PFRDA permits NPS subscribers to withdraw not more than 25 per cent of one's own contribution for specific needs such as higher education, home purchase, marriage or critical illness needs. Only if a subscriber has been in NPS for at least ten years. Now in the critical illness list, it has included Coronavirus too. Thus, allowing subscribers to withdraw amount under critical illness category.
As of February 2020, NPS has around 1.32 crore subscribers and as of March 2020, it has around 2.3 crore subscribers under Atal Pension Yojana (APY).
Recently, Employees’ Provident Fund (EPF) has also allowed its subscribers to withdraw 75 per cent of the fund from one’s EPF account balance or three months’ basic wages or the amount that is needed, whichever is lower.